Jump to content
House Price Crash Forum
Sign in to follow this  
interestrateripoff

Recovery 'anaemic' As Manufacturers Struggle For Credit

Recommended Posts

http://www.guardian.co.uk/business/2009/se...sector-recovery

Any recovery in Britain's manufacturing sector is likely to be "anaemic" as firms continue to struggle to find credit, according to a survey out today.

In their latest quarterly health check of the flagging sector, the EEF manufacturing and engineering employers' association, and the accountants BDO Stoy Hayward found that while conditions across the sector have stabilised in recent months, manufacturers are not expecting a quick turnaround.

"While companies expect to see an improvement in demand in the next quarter and into 2010, the picture remains mixed," the survey said. "As a result, we expect manufacturing to contract by 10.5% this year but post modest growth of 0.5% in 2010."

Steve Radley, chief economist at the EEF, said: "Manufacturers are telling us that output is starting to stabilise but there is little sign of confidence coming back.

"Production is well below pre-recession levels and the road to recovery is likely to be long and bumpy."

He added that tight cashflow and continued problems with access to finance were likely to be "major roadblocks".

"The government has a key role to play in ensuring these problems don't prevent companies from making the investments needed to take advantage of the recovery when it comes."

The EEF said that although output and order balances eased from the record lows seen in last quarter, this was not as much as anticipated and the response levels remain below those seen during the trough of the last recession in the final quarter of 2001.

According to the survey, the pace of job cuts eased in the third quarter of 2009 after large reductions earlier in the year, but the outlook for employment remains weak given the uncertainty facing a lot of companies.

The EEF predicts that, between 2008 and 2010, 195,000 jobs will be shed in engineering and 359,000 in manufacturing.

However, this is not as bad as the losses in the sector's last recession, where 291,000 jobs were lost in engineering and 533,000 in manufacturing between 2001 and 2003.

Tom Lawton, head of manufacturing at BDO Stoy Hayward, said: "The employment picture remains bleak and manufacturers have had to stop or delay investment plans as a result of the economy and the dire state of the financial markets.

"The survey suggests that 2010 will be a difficult year, with subdued growth at best across the sector as a whole – and continuing huge challenges for key subsectors such as automotive."

Perhaps production has returned to normal sustainable levels?

Credit has left the building and doesn't appear to be wanting to come back and play.

First survey that I've seen in the press for awhile that's bearish. Normally these are happy clappy surveys telling us how great everything is.

Share this post


Link to post
Share on other sites

However, this is not as bad as the losses in the sector's last recession, where 291,000 jobs were lost in engineering and 533,000 in manufacturing between 2001 and 2003.

What are these figures as a percentage of the jobs? Bet they are far more comparable if not worse.

All the way through the so called boom manufacturing jobs have been lost.

Share this post


Link to post
Share on other sites

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now
Sign in to follow this  

  • Recently Browsing   0 members

    No registered users viewing this page.

  • The Prime Minister stated that there were three Brexit options available to the UK:   291 members have voted

    1. 1. Which of the Prime Minister's options would you choose?


      • Leave with the negotiated deal
      • Remain
      • Leave with no deal

    Please sign in or register to vote in this poll. View topic


×

Important Information

We have placed cookies on your device to help make this website better. You can adjust your cookie settings, otherwise we'll assume you're okay to continue.